Dogecoin (DOGE), like other meme coins, faced major instability during a two-month downturn in the crypto market. However, despite the price drop, the utility of DOGE continues to expand, and investors are showing increasing confidence in the coin.

According to market analysts, two important trends in the Dogecoin ecosystem are the growing number of wallets now holding 1 million DOGE and the rise in active addresses to a four-month high. These factors could propel the DOGE price upward, especially as the broader crypto market begins to stabilize.

Dogecoin Network Activity Hits Highest Level Since 2022

Recent analysis from crypto market intelligence platform Santiment has shown that the number of wallets holding more than 1 million DOGE has increased by 62 since early February, representing a 1.24% rise. Whales have continued to buy Dogecoin as they observe positive market signals that suggest potential profits for their investments in the long term.

Source: X (@santimentfeed)

For instance, an analysis of Dogecoin’s network activity shows that it has reached its highest level since November 2022, with over 150,000 individual DOGE addresses engaging with their wallets daily. This uptick in active addresses indicates a rise in transaction volume and ongoing engagement within the meme coin community. It also shows that the coin’s practical use goes beyond speculation.

Dogecoin Poised For $2 Target

With the rise in active addresses holding DOGE, its price has stabilized at around $0.17, showing a 4% increase over the past week. Interestingly, an analysis by analyst InvestingScope suggests that DOGE could move further upward to reach $2.00.

Meanwhile, current on-chain data shows that DOGE is still below its 1-week average value (MA50), signaling bearishness in the short term. Its future price growth will depend on market conditions and investors’ perceptions of this cryptocurrency.

Support for Dogecoin Remains Positive

The current sentiment around DOGE is optimistic, with a survey by CoinMarketCap showing that 86% of investors are bullish about the leading meme coin, while only 14% express bearish concerns. This survey, which has about 328,200 participants, shows that more investors still view DOGE favorably despite fluctuations in its market value.

Market data also supports this positivity surrounding Dogecoin. Despite the coin’s recent price drops, large-scale investors keep buying DOGE.